苏州银行（002966）：季报点评：信贷稳步投放，资产质量稳健

Investment Rating - The report maintains a "Buy" rating for Suzhou Bank with a target price of RMB 9.56 [8][9]. Core Views - Suzhou Bank's net profit, revenue, and pre-provision operating profit (PPOP) for the first nine months of 2023 increased by 11.1%, 1.1%, and decreased by 1.9% year-on-year, respectively. The growth rates are slightly better than the previous half-year [2]. - The bank's credit growth is stable, with a focus on improving asset quality and a clear strategic goal, which should allow it to enjoy a valuation premium [2][6]. - The bank's non-performing loan (NPL) ratio remains stable at 0.84%, with a provision coverage ratio of 474%, indicating solid asset quality [5]. Summary by Sections Financial Performance - For the first nine months of 2023, the bank's net interest margin was 1.41%, down 7 basis points from the first half of the year, primarily due to asset-side pressure. Net interest income decreased by 6.5% year-on-year [3]. - The bank's total assets, loans, and deposits grew by 16.1%, 14.1%, and 15.3% year-on-year, respectively, showing a stable expansion in credit [3]. Income Sources - The bank's fee and commission income decreased by 16.3% year-on-year, but the decline has narrowed compared to the first half of the year. Investment income grew significantly by 46.0% year-on-year, contributing to revenue growth [4]. Asset Quality - The NPL ratio as of September 2023 was 0.84%, unchanged from June 2023, while the ratio of special mention loans decreased to 0.83% [5]. - The annualized credit cost for Q3 2023 was 0.50%, down 6 basis points year-on-year, supporting profit release [5]. Valuation and Forecast - The report forecasts the bank's net profit for 2024, 2025, and 2026 to be RMB 51 billion, RMB 56 billion, and RMB 62 billion, respectively, with year-on-year growth rates of 10.8%, 10.2%, and 10.1% [6]. - The target price of RMB 9.56 corresponds to a price-to-book (PB) ratio of 0.75 for 2025, reflecting a premium over comparable banks [6][16].